bthomas

The Dollar Gets Slammed

Fitzman,

We cannot dig our way out of this hole, -ever done it? Blues artist Robert Cray Said it best: "The forecast calls for pain." BTW, love the Cat 5 moron reference.


On Dec 11 02:40 PM The Fitzman wrote:

> bush economic policies have almost guaranteed the following long-term
> trends:
> 1) lower US dollar
> 2) higher oil
> 3) higher gold
> 4) higher inflation (in the US)
> 5) a lower standard of living for US citizens
> 6) an S&P500 which will (continue) to go no-where
>
> the only hope to break this trend is:
> a) responsible fiscal policy (no-hope for that until we dig ourselves
> out of the current deep hole we are in, meaning massive gov spending)

>
> b) more importantly a strategic long-term comprehensive energy policy:

>
> thefitzman.blogspot.co...

>
>
> i am just surprised the US dollar has been as strong as it has been
> for as long as it has been. no doubt it is worldwide investor panic,
> for there is no fundamental reason the US currency should be so strong
> other than the US has the world's dominant military force. unfortunately,
> unwise use of this force has only increased our haste to bankruptcy,
> increased terrorism aimed at us, and reduced our reputation in the
> world. in short, how can the US dollar not go down as such wrongheaded
> US policy and US dollar printing presses work overtime? obama, must
> as i like him, is simply inheriting a colasal mess as the result
> of a cat 5 moron.

The Dollar Gets Slammed

Inflation was/is one of the monetary goals in attempt to stave off deflation/recession, hence the "bailout" investments treasury has made in the banks. Money supply can be reined in once a turnaround is established. The changes Schiff espouses are going to require more prudence than most of consumer America is accustomed to, basically to consume less. That means a slower economy. Probably a slower turnaround. Expect greater regulation despite the current stricture in lending. Further slowing the economy. The value of the dollar goes down relative to yen, euro, and all commodities. With Epic amount of cash flying out of the Fed and Treasury it must. Save more buy less.